Elon Musk’s SpaceX is building rocket launch pads, office buildings, and even a shopping mall in rural Texas. Its business is expanding rapidly, but Reuters has learned that SpaceX and its contractors have been reluctant to pay their contractors and suppliers. Some companies have even filed liens on SpaceX properties in an attempt to get paid.
Some of the companies have shown reluctance to work on SpaceX-related projects again. One case in point is Hydroz Energy Services, which was hired by the space operator to clean up storm drains at a facility near Brownsville, a city in southern Texas. SpaceX failed to pay the company’s $19,214 invoice, forcing the company to file a lien a few months later. “We’re not a $100 million company. It’s been tough for us,” said Hydroz owner Brian Rozelle.
Texas property records show that Hydroz is just one of more than two dozen companies that have filed at least 72 claims against SpaceX facilities and its contractors since 2019, seeking more than $2.5 million in combined payments. A lien is a legal mechanism that allows creditors to collect on their claims against SpaceX for unpaid work: Under Texas law, the landowner on whose property the facilities are located can be held responsible for any unpaid invoices related to construction work. But even with such legal provisions, smaller companies don’t always have the ability to collect from big customers. In some cases, small businesses put up with delays in the hopes of landing new big orders.